MCHP ... will spend time filling in the gap at 25-27 but earnings report could change things.
MICROCHIP TECHNOLOGY (MCHP) Stock is up sharply as Prudential Securities tells its sales force to get out their and push some shares of this chip maker at these discounted levels. Indeed, this stock is quite cheap when compared against the price it traded just a few weeks ago. Since the beginning of the month, the stock has come all the way down from $36 a share, a 25% decline, on fears of disappointing sales of Microchip's non-volatile memory chip's and production problems. A March 7 earnings cut by Robertson Stephens initiated the stock's slide into a tailspin, causing the issue to fall more than 6 points in one day. However, Prudential says it has talked with the company and Microchip informed the firm that sales have been quite strong and that no production problems exist. As a result, Prudential has reiterated its "buy" rating on the stock and is on the horn telling its sales force the company will definitely meet its number and within 12-months the stock should hit its price target of $45 a share. For the 4th qtr ending March, Wall Street is expecting the company to earn $0.31 a share versus the $0.39 a share it made in the year-ago. Specifically, Microchip develops programmable 8-bit microcontrollers, application specific standard products and related specialty memory products for consumer, automotive, office automation, industrial and communications markets. |
